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ARCHBALD - In the midst of investigations by the state auditor general and the FBI, the Northeastern Educational Intermediate Unit is changing its policies related to travel and internal control.

The policies, approved by the board Tuesday night, are an effort to prevent the controversy with the agency's former executive director from happening again.

The investigations, which include the retirement payout, vacation days, travel, mileage reimbursement and credit card usage of Fred Rosetti, Ed.D., are ongoing.

Policy changes include:

- For travel, when the executive director wants to attend a conference out of state, the proposal must be brought before the board for approval. No such requirement existed for Dr. Rosetti, whose mileage reimbursements and credit-card use associated with trips are now being investigated.

-âIf someone suspects the executive director of "engaging in an inappropriate activity," he or she can go to the school board president and report it without fear of retribution. Clarence Lamanna, Ed.D., the agency's new executive director, compared it to a "good Samaritan law." With the existing policy, not all internal controls applied to the executive director, he said.

While the NEIU is in the process of updating all of its policies through the Pennsylvania School Boards Association, Dr. Lamanna said he did not want to wait to update policies for travel and internal controls. Policy suggestions will also likely be made by the auditor general, but change is needed now, he said.

"It just makes sense," Dr. Lamanna said. "This is a step in the right direction."

The policies were approved 15-0, with Robert Bennie from Riverside, Eric Emmerich from Elk Lake, Brian Jeffers from Scranton and Douglas Wilcox from Montrose Area absent. Joseph Cummings from North Pocono left the meeting before the vote.

Dr. Lamanna also discussed the agency's efforts to have employees use NEIU-owned vehicles for travel instead of using their own vehicles and getting reimbursed 55.5 cents per mile for travel. If employees use an NEIU vehicle, they use a gas card to pay for fuel. If they must take their own vehicle, they get reimbursed at the IRS-rate - not both.

A Times-Tribune review earlier this year found that since 2007, there were at least 22 instances in which Dr. Rosetti's gas card was used on the same day that he claimed mileage for on an expense voucher.

Dr. Lamanna said he did not know when the investigations by the FBI and auditor general would conclude.

"We are being cooperative," he said.

When Dr. Rosetti retired in June 2010, he expected to receive a total of $623,000 - $143,000 in a retirement incentive and $480,000 in accrued sick and vacation days. The NEIU board has since decided Dr. Rosetti is ineligible for the retirement incentive, and the auditor general has not yet made a determination on his final payout. The board blindly approved changes in 2003 and 2005 that eliminated any caps on accrued days.

A Times-Tribune review last year revealed Dr. Rosetti charged more than $230,000 on his taxpayer-funded credit card within five years without being required to submit receipts. The NEIU has since changed its policy and canceled its American Express card. Sources have said the state auditor general's office investigation has also included the credit card, use of vacation days, travel expense vouchers and gas card and frequent flier mile usage.

Tuesday's meeting was the first NEIU meeting for the agency's new solicitor, John Audi, of the firm Sweet, Stevens, Katz and Williams in Pittston. In June, the board voted to replace longtime solicitor Jeffrey Tucker, whose role in the controversy at the NEIU, including the contract of Dr. Rosetti, had been questioned.

Contact the writer: shofius@timesshamrock.com

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